Surging Number of Britons Struggling with Finances

The number of Britons with no spare cash at the end of the month is on the rise, as financial pressures continue to mount. Find out why more people are facing financial hardship.

The financial strain on households in the UK has become increasingly apparent, with a significant rise in the percentage of people left with no spare cash at the end of each month. According to Nationwide Building Society, the percentage of households with zero cash left at the end of the month has nearly doubled, increasing from 11 per cent in 2022 to 21 per cent in 2023. Furthermore, the data reveals that more than one in five households have less than £100 going spare at the end of the month, compared to just 13 per cent in 2021.

The research also highlights the substantial increase in monthly household expenses, with average monthly energy bills soaring by 63 per cent between 2021 and 2023. Additionally, monthly food and motor fuel costs have also seen an increase of over 30 per cent. The burden of living costs is evident, as 69 per cent of households express heightened concern about their finances and ability to cope with the ever-rising expenses.

The average amount of disposable cash left over at the end of each month has seen a significant decline, dropping from £328 in 2021 to £295 in 2022 and further down to £237 at the end of 2023. Average monthly energy bills have surged from £126 in 2021 to around £205 per month in 2023, while monthly motor fuel costs have increased by approximately 39 per cent, reaching £121 per month in 2023. The issue of soaring food prices has also come to the forefront, with food price inflation peaking at over 19 per cent in March 2023.

The financial strain on households in the UK has intensified, as evidenced by the significant decrease in disposable income and the substantial rise in monthly expenses. The findings from Nationwide Building Society underscore the growing concern and challenges faced by a large portion of the population in managing their finances amidst escalating living costs.